Stablecoin issuer / redeemer in Ghana

If a stablecoin is designed and functions primarily as a medium of exchange, representing a claim on an underlying fiat currency (e.g., GHS or USD), it would likely be considered electronic money under the Payment Systems and Services Act, 2019 (Act 987) and the Payment Systems and Services Regulations, 2020 (L.I. 2416).

Act 987, Section 156 defines "electronic money" as "monetary value represented by a claim on an electronic money issuer, which (a) is stored electronically on an instrument or device; (b) is issued on receipt of funds for the purpose of making payment transactions; and (c) is accepted by a person other than the electronic money issuer."

Most fiat-backed stablecoins would fit this definition if they were to operate legally within Ghana's payment ecosystem.

For E-Money: Issuers of electronic money are required to be licensed by the Bank of Ghana.

Act 987, Section 3: "A person shall not carry on a payment service or issue electronic money unless that person has been issued with a licence by the Bank of Ghana."

There are different categories of Payment Service Provider (PSP) licenses, including those for Electronic Money Issuers (EMI). Obtaining such a license involves stringent application processes, capital requirements, operational guidelines, and anti-money laundering (AML) / combating the financing of terrorism (CFT) compliance.

Regulatory Body: Bank of Ghana (BoG).

For E-Money: If a stablecoin were to be classified and licensed as electronic money under the PSSA, 2019, its issuer would be subject to strict reserve requirements.

Act 987, Section 10(1): An electronic money issuer "shall hold an equivalent amount of funds in a dedicated trust account with a bank."

L.I. 2416, Regulation 15: Elaborates on the types of assets that can back e-money (e.g., highly liquid, low-risk assets) and requires regular reporting to the BoG. The e-money must be fully backed at all times.

For E-Money: If classified as electronic money, holders would have strong redemption rights.

Act 987, Section 11(1): "The holder of electronic money may at any time request the electronic money issuer to redeem, at par value, the monetary value of the electronic money."

The issuer is required to redeem the electronic money without charge, unless specified conditions are met (e.g., minimum redemption amount, fee for specific circumstances).

If a stablecoin structure gives holders rights to a share of profits, interest, or represents an ownership interest in a pool of assets managed for profit (beyond mere redemption at par), it could potentially be classified as a security under the Securities Industry Act, 2016 (Act 929).

For Securities: If a stablecoin were deemed a security, its issuer and any intermediaries would need to be licensed by the Securities and Exchange Commission (SEC) under the Securities Industry Act, 2016 (Act 929).

BoG Statement (e.g., February 2022): "The Bank of Ghana wishes to reiterate that cryptocurrencies such as Bitcoin are not licensed in Ghana. The public is advised to desist from all activities and transactions involving unregulated cryptocurrency and other virtual asset products." (Specific notice URL may vary, but this sentiment is consistent).

Bank of Ghana (BoG): The central bank is the most active and vocal regulator regarding cryptocurrencies. It is responsible for monetary policy, currency issuance, and the regulation of payment systems and financial institutions.

Securities and Exchange Commission (SEC Ghana): While less explicitly involved than the BoG, the SEC would likely assert jurisdiction if crypto assets were classified as securities or investment products, especially concerning public offerings or investment schemes.

Anti-Money Laundering Act, 2020 (Act 1044): While not crypto-specific, this Act provides the legal framework for combating money laundering and terrorist financing in Ghana. It generally aligns with Financial Action Task Force (FATF) recommendations, which include virtual assets within the scope of AML/CFT obligations. If virtual asset service providers (VASPs) were to operate, they would likely fall under the reporting obligations of this Act.

Not Legal Tender: The Bank of Ghana has repeatedly stated that cryptocurrencies are not legal tender in Ghana. The only legal tender is the Ghana Cedi.

No Official Support for Virtual Asset Service Providers (VASPs): There is no clear framework for the registration or licensing of VASPs, making it difficult for legitimate crypto businesses to operate formally.

Anti-Money Laundering Act, 2020 (Act 1044): This is the most crucial piece of legislation. It provides the legal framework for combating money laundering and terrorist financing in Ghana, incorporating international standards, including those related to targeted financial sanctions. VASPs, by their nature, would fall under the broader definition of financial institutions or designated non-financial businesses and professions (DNFBPs) if they are involved in activities like exchange, transfer, or safekeeping of virtual assets.

Ghana's Obligation: As a UN member state, Ghana is legally bound to implement targeted financial sanctions mandated by the UNSC. These resolutions typically target individuals, entities, and groups involved in terrorism, proliferation of weapons of mass destruction (WMD), or those threatening international peace and security.

FIC's Role: The Financial Intelligence Centre (FIC) is responsible for ensuring compliance with UNSC Resolutions, including maintaining and disseminating consolidated lists of sanctioned individuals and entities.

VASP Requirements: VASPs operating in Ghana must:

Screen: Conduct ongoing screening of all customers (individuals and entities) and beneficial owners against the UNSC Consolidated Sanctions List.

Freeze Assets: Immediately freeze any virtual assets or funds belonging to, or controlled by, designated individuals or entities.

Prohibit Transactions: Cease all transactions with designated individuals or entities.

Report: Report any hit or frozen assets to the FIC without delay.

Extra-territorial Reach: OFAC sanctions have a broad extra-territorial reach. While not directly binding Ghana as a sovereign nation, they apply to:

VASP Requirements: For VASPs in Ghana with any U.S. nexus or ambition to interact with the U.S. financial system:

Applicability: If cryptocurrencies are treated as "chargeable assets" (similar to shares, land, etc.), then the disposal of crypto for a profit would attract Capital Gains Tax.

Tax Rate: The Income Tax Act, 2015 (Act 896) stipulates a Capital Gains Tax rate of 15% on the net gains derived from the realization of chargeable assets.

Exchange Transactions: The buying and selling of cryptocurrency itself (e.g., crypto-to-fiat, crypto-to-crypto) is unlikely to be subject to VAT if it's considered a financial service or akin to a currency. Ghana's VAT Act exempts certain financial services.